Electronic enthusiast.com reported (Wen / Huangshan Ming) recently, the reduction of Porsche has attracted extensive public attention and has been on the hot search list of major platforms for many times. Under pressure, Porsche responded, but the letter of apology was not accepted by the public. The continuous fermentation of public opinion made Porsche respond again on May 12. Can this response respond to the storm of public opinion? Why did Porsche reduce the allocation and reflect the hidden injuries in the car market behind it?

Source: Porsche

Two responses from Porsche

In April, some Porsche owners found that some Porsche vehicles replaced the steering column with manual adjustment function, and were informed to cancel the later recovery and replacement plan. However, Porsche has previously told that due to the shortage of chips, this is only temporary. When the chips arrive in the later stage, they will be replaced for free. Now Porsche has gone back on its word, which has also made many car owners very angry.

With the passage of time, more and more Porsche owners have found this problem, which has led to the uproar of public opinion for a time. On April 30, Porsche officials finally responded to the matter.

According to the official response, since 2020, due to the continuous serious shortage of global semiconductor production capacity, there has been a production bottleneck in the automotive industry, including the steering column with electric regulation function. In the second half of 2021, in order to ensure the timely delivery of vehicles, it was decided to replace the electric steering column of some models with manual steering column. And it is planned to restore this function through modification after the chip shortage is alleviated.

However, the shortage of semiconductor production capacity is still very serious. Porsche officials cannot predict the arrival time of chips related to electric adjustment function. Therefore, at the end of the first quarter of this year, Porsche headquarters was forced to cancel the replacement plan of steering column with electric adjustment function.

This statement has obviously not been recognized by consumers and users, and public opinion is still fermenting. And from the release of the apology statement until May 12, car owners still reported that their ordered Porsche models had reduced the electric steering column.

Perhaps in order to quell the negative voice on the Internet, Porsche responded for the second time on May 12: “at present, a special working group composed of Porsche headquarters and Porsche China has also conducted in-depth discussions with relevant suppliers, and re sorted and analyzed the supply and production of spare parts in the future. Through our efforts, we have made some progress in the recovery possibility of this function.”

However, this response still does not give a substantive solution, and many car owners feel unfair that Porsche will not only compensate for some overseas markets and models with certification requirements, but also continue to carry electric steering column in the future.

Porsche pride

Regardless of the final direction of the current Porsche reduction event, an inevitable problem is that even Porsche has encountered the problem of lack of core, so it has to replace the electric steering column with the manual steering column.

The so-called electric steering column, that is, the electric adjustment device of the steering wheel, can cooperate with the memory function of Porsche to automatically adjust the steering wheel and find the most suitable height and position for the driver. It is also because the function is less used. The corresponding value of this function can be reflected only when multiple drivers exist for a long time at the same time.

Porsche is not alone in the case of core shortage and distribution reduction. In the past year, most auto enterprises have been impacted by the imbalance of global supply chain. For example, Nissan has temporarily abandoned the navigation function on some vehicles, and the 1500 pickup trucks under Dodge Ram are no longer equipped with intelligent rear-view mirrors. In order to save the amount of chips, Renault Arkana SUV is no longer equipped with large-size digital screen on the steering wheel, and the 308s high configuration model has also cancelled the full LCD instrument.

However, these brands will reduce the price after choosing to reduce the configuration. In this way, the former BMW 330li xDrive m sports night suit and BMW 330i m sports night suit cancelled the three configurations of mobile phone wireless charging, Wi Fi hotspot and digital key due to lack of core, but the official guidance price was reduced by 4000 yuan.

While reducing the allocation, Porsche still sold it to the car owner at the original price. At first, it promised that the chip could be replaced free of charge after arrival. However, due to the lack of core, this scheme was cancelled, but the excess money was not returned to the car owner, and only 2300 Yuan coupons were provided. And when the car was mainly replaced with electric steering column, Porsche said it needed 30000 yuan to replace it, which became the root of the contradiction.

It is not reasonable to say this, because in the past seven years, China has become the world’s largest market for Porsche brands. According to the data, Porsche delivered 301900 vehicles worldwide in 2021, including 95700 vehicles in China, a year-on-year increase of 8%, accounting for 32%. Based on the average transaction price of 775400 yuan, Chinese consumers contributed 74.128 billion yuan of revenue to Porsche, excluding after-sales, maintenance and other revenue increasing businesses.

Another noteworthy problem is that even if there is no core shortage problem, many foreign-funded vehicles or joint venture vehicles will still be reduced in the Chinese market, which has even become the default rule in the industry. There are two main reasons.

If the cost of foreign-invested cars is too low compared with the standard of Chinese cars, it will inevitably lead to the rise of the cost of foreign-invested cars, which will inevitably lead to the failure of many Chinese consumers to meet the standard of foreign-invested cars.

Second, the relevant policies at home and abroad are inconsistent. For example, China has a double integral emission reduction policy, and large displacement will lead to negative integral. However, there is no such provision in the U.S. market, so the displacement of cars in the U.S. version will be relatively large. However, after entering the domestic market, if the sales volume of the brand’s new energy vehicles is poor, or it needs to spend a lot of costs to buy new energy positive points, it will lead to high costs. If you want to reduce costs, you can only reduce the displacement, which will lead to inconsistent vehicle configurations at home and abroad.

Hidden injury of automobile market

The current situation of Porsche also reflects that after a whole year of core shortage last year, the supply of automobile chips has not been greatly improved, which is obviously different from the previous prediction, and even many automobile enterprises have been greatly affected.

Previously, CCTV finance and economics has reported that hundreds of cars in the parking lot outside the Ford factory in the United States were forced to idle and could not be delivered, mainly because they were not installed with chips.

Finally, in order to ease the financial pressure and reduce inventory, Ford even announced that it would sell “semi-finished” vehicles lacking some non safety critical function chips, and promised to reissue the chips to dealers one year later to help install them on customers’ cars.

According to the statistics of AFS, an auto industry data prediction company, as of May 8, due to the shortage of chips, the cumulative production reduction in the global auto market this year reached 1693800. Among them, the shortage of semiconductors in Europe was the hardest hit, with a production reduction of about 783600 vehicles, accounting for about 46% of the cumulative production reduction in the global automobile market.

AFS had previously predicted that this year’s global auto industry may be smoother than that in 2021. It is expected that the production reduction will be reduced to about 770000 vehicles. Now it is only may, and its actual situation has far exceeded AFS’s prediction. This is mainly due to the continuation of the COVID-19, the conflict between Russia and Ukraine, and the delayed commencement of local enterprises in Japan due to the shortage of raw materials.

Cars usually have tens of thousands of parts. Problems in a certain link may lead to the failure of mass production. Moreover, in today’s environment, the imbalance of market supply chain makes it more difficult to match the components needed by cars.

This will lead to a problem. On the one hand, car manufacturers will actively purchase scarce components to prevent out of stock. Therefore, many car manufacturers begin to place repeated orders. Recently, ansenmey Shenzhen factory has stopped receiving IGBT orders because its production capacity has been sold out from 2022 to 2023. At present, the supply and demand gap in China’s automobile IGBT market has reached 50% and the delivery time is more than 50 weeks. Such a serious shortage of goods is also an important driver for many automobile factories to place repeated orders in addition to the reasons of the supply chain.

On the other hand, for many components that are not scarce, vehicle manufacturers will place orders carefully. For example, many passive component manufacturers said that the order volume did not increase, but decreased. This has also led to the abnormal development of the market. On the one hand, it is in full swing, but on the other hand, it is neglected.

The urgent needs of vehicle manufacturers make upstream manufacturers eat more. For example, TSMC recently said that it would increase the chip OEM price by 6% next year, and Samsung also said that it would consider raising the chip price by 20%. Therefore, it seems that Porsche stores deceive customers, but the reasons behind it are thought-provoking.

Write at the end

Automobile manufacturing is a complex and huge industrial production process, because it involves traffic safety, so the production requirements are particularly strict. This also means that automobile manufacturers will not easily replace their own parts, because these parts have experienced the test of safety. If they want to be reintegrated into new suppliers, they need to carry out long vehicle regulation level verification, which is why many automobile production has decreased.

Although Porsche’s behavior today is suspected of cheating customers, consumers also need to realize that in today’s core deficient market environment, the cost of buying a car is higher than that in other periods of time, and it needs to think twice before buying this product.

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